[Havelock] Bitcoin Difficulty Derivative (BDD) - page 44.

ZephramC

sr. member

Activity: 475

Merit: 255

Quote from: dyask on January 05, 2015, 05:34:32 AM

Quote from: pumawolf on January 04, 2015, 09:40:33 PM

what difficulty increase is needed for an b sell pay out.

At this point, probably over 50%. It won't happen this time, but you could buy a ton of B.SELL cheap in case it does happen again.

If it does it will be multiple changes down the road.

My very rough step-by-step calculation... {for each unit:} BDD should hold 200 days of dividends. Current dividend is 0.00006187 BTC. BDD should hold 0.012374 BTC. BDD currently holds 0.00784292 BTC.
B.SELL will pay dividend if B.MINE dividend becomes 0.00784292/200=0.00003921 BTC. This will happen for difficulty 64.13 giga. That means 64.13/40.64 = 1.578 ... We need 57.8% increase.

The number of BDD units will obviously change, but this should be rough estimation. Please correct me if I made some serious mistake.

pumawolf

sr. member

Activity: 968

Merit: 250

Quote from: dyask on January 05, 2015, 05:34:32 AM

Quote from: pumawolf on January 04, 2015, 09:40:33 PM

what difficulty increase is needed for an b sell pay out.

At this point, probably over 50%. It won't happen this time, but you could buy a ton of B.SELL cheap in case it does happen again.

If it does it will be multiple changes down the road.

oh fuk haha, did not expect it to be that high, thanks for the reply. i will be following this stock n playing it, theres alot to learn in here.

twentyseventy

legendary

Activity: 1386

Merit: 1000

Quote from: WhatsBitcoin on January 03, 2015, 05:22:06 PM

I've looked at this thread at least 100 times and still try to make sense of it and what derivative investing is all about...Wish it was simply to understand. I get the concept that you are betting for or against the expected rate of hashing reward for the mining farm in question here, but don't understand how you can evaluate successfully and profitably when the time to get out would be (or what you would use to judge that). You keep taking in dividends but at the same time the principle is depreciating.

First off, this is not investing - it's speculating. You're speculating about where the difficulty is going to be in the future and how fast that it's going to get there.

There is no mining equipment whatsoever. Dividends are actually a misnomer, they are daily payouts to the holders of MINE. I suggest you go through the FAQs and some explanations on the first few pages and go from there-

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 28, Day 5 Report - January 5, 2015

Balance Post Divs: BTC 179.37553529

Total Units: 22871

NAV/U: BTC 0.00784292

dyask

hero member

Activity: 854

Merit: 510

Quote from: pumawolf on January 04, 2015, 09:40:33 PM

what difficulty increase is needed for an b sell pay out.

At this point, probably over 50%. It won't happen this time, but you could buy a ton of B.SELL cheap in case it does happen again.

If it does it will be multiple changes down the road.

pumawolf

sr. member

Activity: 968

Merit: 250

what difficulty increase is needed for an b sell pay out.

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 28, Day 4 Report - January 4, 2015

Balance Post Divs: BTC 180.55206479

Total Units: 22841

NAV/U: BTC 0.00790473

Quote from: WhatsBitcoin on January 03, 2015, 05:22:06 PM

I've looked at this thread at least 100 times and still try to make sense of it and what derivative investing is all about...Wish it was simply to understand. I get the concept that you are betting for or against the expected rate of hashing reward for the mining farm in question here, but don't understand how you can evaluate successfully and profitably when the time to get out would be (or what you would use to judge that). You keep taking in dividends but at the same time the principle is depreciating.

Will be back on later today to see if I can help clear up some confusion for you-

WhatsBitcoin

hero member

Activity: 560

Merit: 502

I've looked at this thread at least 100 times and still try to make sense of it and what derivative investing is all about...Wish it was simply to understand. I get the concept that you are betting for or against the expected rate of hashing reward for the mining farm in question here, but don't understand how you can evaluate successfully and profitably when the time to get out would be (or what you would use to judge that). You keep taking in dividends but at the same time the principle is depreciating.

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 28, Day 3 Report - January 3, 2015

Balance Post Divs: BTC 181.03578502

Total Units: 22725

NAV/U: BTC 0.00796637

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 28, Day 2 Report - January 2, 2015

Balance Post Divs: BTC 182.44178077

Total Units: 22725

NAV/U: BTC 0.00802824

twentyseventy

legendary

Activity: 1386

Merit: 1000

Period 28, Day 1 Report - January 1, 2015

Balance Post Divs: BTC 183.83954140

Total Units: 22724

NAV/U: BTC 0.00809010

twentyseventy

legendary

Activity: 1386

Merit: 1000

Quote from: Coin.millionair on December 31, 2014, 01:43:35 PM

Quote from: Coin.millionair on December 31, 2014, 12:00:24 PM

Hey.

I just invested on Havelock yesterday.
Bought 11 B.SELL as a test.
Will get some more, if looks good...

QA:
How and when will i receive my first dividend ?

Thx.

Answer ?

B.MINE will receive daily dividends until the fund is exhausted; currently there are enough funds to pay for about 131 days of dividends at this current difficulty. As the difficulty changes, the payouts to B.MINE change as well.

The goal of the fund is to keep 200 days of dividends on hand; if the difficulty changes (increases) enough that there are more than 200 days of dividends on hand, SELL will receive extra funds (over the 200 days worth) as a dividend. As you can see, 131 days of dividends is far lower than the optimal 200 days to have on hand, which is why SELL hasn't received a dividend in a while.

This has happened because the difficulty has leveled off in the past few months, leaving relatively constant payouts and diminishing the funds available. As an aside, this is BDD working correctly, not a flaw.

So, B.SELL may never receive another dividend; or, difficulty can increase significantly and SELL will then receive another dividend; the increase would have to outpace the payouts to B.MINE, however.

rponder

newbie

Activity: 6

Merit: 0

yes, bmine

Coin.millionair

sr. member

Activity: 448

Merit: 250

Quote from: pumawolf on December 31, 2014, 06:03:52 PM

Quote from: Coin.millionair on December 31, 2014, 01:43:35 PM

Quote from: Coin.millionair on December 31, 2014, 12:00:24 PM

Hey.

I just invested on Havelock yesterday.
Bought 11 B.SELL as a test.
Will get some more, if looks good...

QA:
How and when will i receive my first dividend ?

Thx.

Answer ?

b.mine pays daily, if u bought b.sell, then it only pays when the its the diffuculty changes but it has to be a certain + percentage, i dont no the formula to calculating that. just look at the divendends page compare it to the diffculty change u will see when there is high diff change it pays out.

Ok, then what are those daily dividends back in this thread ?
Are they for B.mine ?

eg. these:

Quote from: twentyseventy on December 21, 2014, 12:07:17 PM

Period 27, Day 4 Report - December 21, 2014

Balance Post Divs: BTC 193.57457577

Total Units: 22032

NAV/U: BTC 0.00878606

Quote from: twentyseventy on December 22, 2014, 12:39:27 PM

Period 27, Day 5 Report - December 22, 2014

Balance Post Divs: BTC 192.17069673

Total Units: 22032

NAV/U: BTC 0.00872234

pumawolf

sr. member

Activity: 968

Merit: 250

Quote from: Coin.millionair on December 31, 2014, 01:43:35 PM

Quote from: Coin.millionair on December 31, 2014, 12:00:24 PM

Hey.

I just invested on Havelock yesterday.
Bought 11 B.SELL as a test.
Will get some more, if looks good...

QA:
How and when will i receive my first dividend ?

Thx.

Answer ?

b.mine pays daily, if u bought b.sell, then it only pays when the its the diffuculty changes but it has to be a certain + percentage, i dont no the formula to calculating that. just look at the divendends page compare it to the diffculty change u will see when there is high diff change it pays out.

Coin.millionair

sr. member

Activity: 448

Merit: 250

Quote from: Coin.millionair on December 31, 2014, 12:00:24 PM

Hey.

I just invested on Havelock yesterday.
Bought 11 B.SELL as a test.
Will get some more, if looks good...

QA:
How and when will i receive my first dividend ?

Thx.

Answer ?

rponder

newbie

Activity: 6

Merit: 0

is the b mine fund yours?

twentyseventy

legendary

Activity: 1386

Merit: 1000

Quote from: rponder on December 31, 2014, 12:14:15 PM

have b mine div been posted yet? Lips sealed

Havelock processed it late today, not sure why. Has posted now, though, and scheduled for next 10 days as usual-

rponder

newbie

Activity: 6

Merit: 0

have b mine div been posted yet? Lips sealed

Coin.millionair

sr. member

Activity: 448

Merit: 250

Hey.

I just invested on Havelock yesterday.
Bought 11 B.SELL as a test.
Will get some more, if looks good...

QA:
How and when will i receive my first dividend ?

Thx.

Topic: [Havelock] Bitcoin Difficulty Derivative (BDD) - page 44. (Read 290301 times)